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London’s blue chip index edged higher on Tuesday, with its largest constituent AstraZeneca supporting gains, as investor heads turn to the US Federal Reserve’s interest rate decision due Wednesday. ‘It’s a busy week for corporate earnings in the UK and US, and investors have plenty of news to digest. The latest set of UK results were generally well-received,’ said Russ Mould at AJ Bell. The FTSE 100 index closed up 54.88 points, 0.6%, at 9,136.32. The index had earlier traded as high as 9,163.24. The FTSE 250 closed 158.73 points lower, 0.7%, at 21,793.07, and the AIM All-Share closed down 7.27 points, 0.9%, at 765.75. The Cboe UK 100 ended up 0.7% at 913.22, the Cboe UK 250 fell 0.7% to 19,125.47, and the Cboe Small Companies closed down 0.4% at 17,678.63. In London, investors weighed a barrage of earnings with shares of AstraZeneca, Barclays, Games Workshop and Entain moving higher although Croda International struggled. Games Workshop led the way, up 5.4%, as it said pretax profit jumped 29% to £262.8 million in the financial year that ended June 1 from £203.0 million a year ago. The Nottingham, England-based fantasy game figurine maker and retailer said revenue rose 17% to £617.5 million from £525.7 million. Reflecting the strong earnings, the total dividend was £5.20, up 24% from £4.20 the year before. AstraZeneca, the largest FTSE 100 constituent, rose 3.4%. The Cambridge, England-based pharmaceuticals company said pretax profit jumped 30% to $3.13 billion in the second quarter of 2025 from $2.40 billion a year prior, or by 34% at constant currency. Revenue rose 12% to $14.46 billion in the quarter from $12.94 billion a year ago, or by 11% at constant currency, ahead of Visible Alpha consensus of $14.31 billion. Sales were driven by double-digit growth in Oncology and BioPharmaceuticals with increases across all major geographic regions. Entain climbed 0.8% as it raised guidance at its BetMGM joint venture, while Barclays advanced 2.5% after well-received results and despite a lack of a guidance hike. Bank of America said Barclays printed a ‘good’ set of results, with underlying profit around 11% above consensus, driven primarily by higher income (particularly non-interest income) and lower impairments. But Croda International was down 10%. The specialty chemicals maker posted improved revenue for the first half, though impairments limited its bottom line. Croda’s pretax profit in the first half of 2025 fell 19% to £85.5 million from £106.1 million, despite revenue improving 4.9% to £855.8 million from £815.9 million. Adjusted pretax profit rose 8.4%, however, to £138.0 million from £127.3 million. Revenue fell slightly short of the company-compiled consensus of £857.0 million. It beat on profit, however, as the adjusted pretax profit consensus stood at £136.6 million. The upbeat mood spread to Europe. The CAC 40 in Paris rose 0.7%, while the DAX 40 in Frankfurt advanced 1.0%. However, Denmark’s Novo Nordisk plunged 23% as it lowered full-year sales and profit guidance citing weaker-than-expected uptake of key weight-loss and diabetes treatments in the US. Novo Nordisk lowered its 2025 sales growth guidance to between 8% and 14%, down from 13% to 21%. It now expects operating profit growth of 10% to 16%, reduced from a previous range of 16% to 24%. The company blamed slower-than-expected Wegovy uptake in the US obesity market, compounded by ongoing sales of compounded GLP-1s, a more competitive landscape for Ozempic in the US, and lower-than-expected Wegovy penetration in select international markets. Analysts at Jefferies said the 2025 outlook cut suggests high single digit percentage underlying profit forecast downgrades. In New York on Tuesday, the Dow Jones Industrial Average was down 0.3%, the S&P 500 was 0.1% lower, as was the Nasdaq Composite. A report from the Conference Board showed a slight pick up in consumer confidence, albeit from low levels, while another release showed a larger than expected drop in job openings. On Wednesday, the Federal Reserve is widely expected to leave interest rates unchanged. According to the CME FedWatch Tool, it is near-certain that the Fed maintains rates at the 4.25%-4.50% range this week. The Fed held in each of the first four meetings this year. Its last cut was in December, a 25 basis points trim to the federal funds rate range. A fifth successive hold is in the offing during the final meeting before a summer break. A ‘wait and see’ approach will likely be the message from Chair Powell at the subsequent press conference, analysts at Morgan Stanley predict. ‘We think Chair Powell will remain balanced, acknowledging both upside risks to inflation and the projections for rate cuts later this year,’ Morgan Stanley analysts said. Attention will focus on any dissent in the ranks of the Federal Open Market Committee where Governors Michelle Bowman and Governor Christopher Waller may back a rate cut. Meanwhile, Chinese and US delegations met for their second day of trade negotiations in Stockholm, with both sides said to be aiming to extend a truce due to end in two weeks’ time. Neither side has so far made public any information about what has gone on in the talks, which started on Monday. ‘There is an expectation that an extension to the tariff deadline with China will open a pathway for Xi Jinping and Donald Trump to meet in person, heightening hopes for an impending trade deal between the world’s two largest economies,’ remarked Joshua Mahony at Rostro. The pound eased to $1.3337 late on Tuesday afternoon in London, compared to $1.3403 at the equities close on Monday. The euro traded at $1.1537, lower against $1.1620. Against the yen, the dollar was trading slightly lower at JP¥148.38 compared to JP¥148.45. The yield on the US 10-year Treasury was at 4.35%, trimmed from 4.42%. The yield on the US 30-year Treasury was at 4.88% narrowed from 4.96%. On Wall Street, Merck was another drugs maker in the news with shares down 4.8% as it announced plans to save $3 billion annually by the end of 2027, and tightened full-year guidance, as second quarter sales fell short of expectations. The Rahway, New Jersey-based pharmaceutical company said GAAP net income fell 19% to $4.43 billion in the second quarter of 2025 from $5.46 billion a year prior. Sales decreased 1.9% to $15.81 billion from $16.11 billion a year ago, missing LSEG consensus of $15.89 billion. Sales of human papillomavirus drug, Gardasil, slumped 55% to $1.13 billion due to lower demand in China. Brent oil was quoted higher at $70.74 a barrel in London on Tuesday, up from $69.65 late Monday. Gold rose to $3,327.45 an ounce against $3,314.26. The biggest risers on the FTSE 100 were Games Workshop, up 830.00 pence at 16,090.00p, AstraZeneca, up 368.00p at 11,158.00p, Endeavour Mining, up 66.00p at 2,332.00p, Barclays, up 10.00 pence at 371.20p and Rolls Royce, up 24.60p at 1,006.00p. The biggest fallers on the FTSE 100 were Croda International, down 301.00p at 2,598.00p, Rentokil Initial, down 12.90p at 348.10p, Glencore, down 10.80p at 305.90p, Unite Group, down 21.50p at 764.50p and Whitbread, down 86.00p at 3,108.00p. Wednesday’s local corporate calendar has half year results from defence manufacturer BAE Systems, Asia-focused lender HSBC, pharmaceuticals firm GSK, miners Rio Tinto and Glencore and housebuilder Taylor Wimpey. The global economic calendar on Wednesday sees interest rate decisions in the US and Canada, and US economic growth figures. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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